(a)
(1) In addition to other taxes imposed by law, there is levied an additional excise or privilege tax on the first sale of tobacco products other than cigarettes at the rate of thirty-six percent (36%) of the invoice price to a wholesaler or retailer, before discounts.
(2) However, the excise or privilege tax levied under subdivision (a)(1) of this section is subject to the limitation stated in § 26-57-208(2)(B).
(3) As used in this subsection, "invoice price" means the same as defined in § 26-57-203.
(b)
(1) The tax levied by this section shall be reported and paid by wholesalers that shall be licensed under § 26-57-214.
(2) However, unless a retailer has confirmed and establishes by clear and convincing evidence that the tax levied under this section has been paid previously on the tobacco products, the retailer is liable for reporting and paying this tax when the retailer obtains tobacco products from a person other than a wholesaler licensed under § 26-57-214.
(c) The exemptions and waivers allowed under §§ 26-57-209 and 26-57-210 [repealed] shall apply to this section.
(d) The additional tax levied under this section shall be imposed, reported, remitted, and administered in the same manner and at the same time as other taxes levied on cigarettes in the Arkansas Tobacco Products Tax Act of 1977, § 26-57-201 et seq.
(e) The revenue derived from the additional tax imposed by this section shall be credited to the General Revenue Fund Account of the State Apportionment Fund, there to be distributed with the other gross general revenue collections for that month in accordance with the Revenue Stabilization Law, § 19-5-201 et seq.
(f) As provided in § 26-57-244, the Director of the Department of Finance and Administration may make a direct assessment of excise tax against any person in possession of an untaxed tobacco product.
(g) (1) A taxpayer that fails to report and remit the tobacco tax due on tobacco products obtained from a person other than a wholesaler that is licensed under § 26-57-214 is subject to the following penalties:
(A) For the first offense, five percent (5%) of the total tobacco tax due;
(B) For the second offense, twenty percent (20%) of the total tobacco tax due; and
(C) For the third and any subsequent offenses, twenty-five percent (25%) of the total tobacco tax due.
(2) In addition, a taxpayer's cigarette or tobacco permit shall be revoked for a period of ninety (90) days for the third and subsequent offenses.
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